By Angela A. Turiano of Scarinci Hollenbeck LLC
Small Business, Big Leave: New Coverage Rules, Lower Eligibility Thresholds, and Expanded Reinstatement Rights
If your New Jersey business has 15 or more employees, you will soon be required to provide job-protected family leave under state law. Effective July 17, 2026, the NJ Family Leave Act amendments lower the coverage threshold from 30 employees to 15 and dramatically reduce employee eligibility requirements. Signed into law in January 2026, Assembly Bill 3451 also makes related changes to Family Leave Insurance (FLI) and Temporary Disability Insurance (TDI), expanding both employee eligibility and employer obligations.
This article outlines the key changes and explains what they mean for New Jersey employers, particularly small businesses entering the NJFLA's scope for the first time.
Which NJ Employers Are Now Covered Under the NJFLA?
Historically, the NJFLA applied only to employers with 30 or more employees. Beginning July 17, 2026, that threshold drops to 15 employees, with further reductions scheduled in subsequent years. Many small businesses, some of which have never had to administer job-protected leave before, will now be required to comply with the statute's full range of obligations, including notice requirements, documentation, and reinstatement rights. For employers operating with lean staffing models, this shift alone may require the development of entirely new internal policies and procedures.
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